Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Consumer Stocks Skating on Thin Ice

PTON Cover Image

The performance of consumer discretionary businesses is closely linked to economic cycles. This sensitive demand profile can lead to some stock price volatility, but over the past six months, the industry has stayed on track as its 6.3% return was close to the S&P 500’s.

Although these companies have produced results lately, investors must be mindful because many are fads and only a few will stand the test of time. Keeping that in mind, here are three consumer stocks we’re steering clear of.

Peloton (PTON)

Market Cap: $3.42 billion

Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.

Why Do We Think PTON Will Underperform?

  1. Sluggish trends in its connected fitness subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Poor expense management has led to operating losses
  3. Negative free cash flow raises questions about the return timeline for its investments

Peloton is trading at $8.31 per share, or 12.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than PTON.

Verizon (VZ)

Market Cap: $182.4 billion

Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE: VZ) is a telecom giant providing a range of communications and internet services.

Why Should You Sell VZ?

  1. Underwhelming customer growth over the past two years shows the company faced challenges in winning new contracts
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.7%
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $43.55 per share, Verizon trades at 9.1x forward price-to-earnings. To fully understand why you should be careful with VZ, check out our full research report (it’s free).

Tapestry (TPR)

Market Cap: $17.47 billion

Originally founded as Coach, Tapestry (NYSE: TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.

Why Are We Cautious About TPR?

  1. Lackluster 1.4% annual revenue growth over the last two years indicates the company is losing ground to competitors
  2. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
  3. Projected sales growth of 2.9% for the next 12 months suggests sluggish demand

Tapestry’s stock price of $83.66 implies a valuation ratio of 17x forward price-to-earnings. Check out our free in-depth research report to learn more about why TPR doesn’t pass our bar.

Stocks We Like More

With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.

Put yourself in the driver’s seat by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.

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